LOS ANGELES - The Los Angeles City Council’s Trade, Travel, and Tourism Committee held a special meeting today in the Harbor on the APM Terminal Pier 400 driverless electric cargo handlers. This hearing comes after Councilmember Tim McOsker introduced a motion in August to investigate whether jobs were eliminated on a broken promise after learning the handlers, which were permitted as electric, are fueled by diesel.
“I am unequivocally opposed to automation that eliminates jobs, and I will never agree that we are forced to choose to protect the environment or the workforce. We must make urgent course corrections on climate change, but not at the expense of good union jobs,” said Councilmember Tim McOsker. “It’s clear to me that the underlying commitment made in 2019 to improve the environment and protect jobs is both unrealized and under threat.”
In 2019, the Los Angeles Board of Harbor Commissioners voted 3 to 2 to approve a permit for Maersk, a global logistics conglomerate, to introduce driverless electric cargo handlers inside their Port of Los Angeles facility. Part of Maersk’s Transport and Logistics business unit, APM Terminals’ Pier 400 in LA is one of the largest single proprietary terminals in the world.
However, in a rare rebuke to the Commission, the Los Angeles City Council voted to assert jurisdiction and deny the permit to begin the process of automating operations at the APM terminal. Shortly thereafter, the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) entered into an agreement with APM to proceed with this improvement program for driverless electric cargo handlers.
Under this plan, APM would deploy up to 130 of these driverless cargo handlers that would be used to shuttle containers from off the docks to drayage trucks and rail, establish a Maintenance and Repair training program for ILWU members who work at the terminal, and pursue “reasonable best efforts” to employ these workers. As of today, there are 109 of the 130 driverless cargo handlers, however the workforce training facility is only recently under construction, and yet to be operational.
It was argued in 2019 that while some jobs would be lost, the electric cargo carriers would replace diesel-powered vehicles and save an estimated 2.2 million gallons of diesel fuel a year which could lead to a drastic improvement in the local air quality for the residents of the Wilmington and San Pedro areas.
In today’s hearing, the Vice President/General Counsel for APM said that in 2018 the discussions they had with Kalmar, the equipment provider, was that the company was working towards fully electric cargo handlers but that they would provide hybrid electric/diesel carriers in the meantime. However, as of November 2023, no charging stations for the 109 cargo handlers have been installed, forcing APM to rely on diesel engines to operate. Further, it was discovered during today’s meeting that APM has not yet applied for an LADWP permit to install electric plug-ins in anticipation of the handlers going completely electric.
In response to today’s hearing, McOsker introduced an amendment for the Executive Director of the Port of Los Angeles to provide a report and regular updates to the Trade, Travel & Tourism Committee on the timeline for the completion of the 2019 permit and APM’s environmental sustainability commitments.
Furthermore, McOsker’s original motion sought to see if jobs were eliminated on a broken promise of sustainability given that the cargo handlers are running on diesel.
The LA Times reported in 2019 that Maersk declined to say how many jobs would be affected by replacing current cargo carriers with the unmanned vehicles. Nor did they say what other jobs at its terminal were likely to be automated.
According to the Daily Breeze, in 2019, following a period that saw terminals in the ports of Los Angeles and Long Beach follow a path toward more automation — a process that would result in job losses on the docks — the PMA and the International Longshore and Warehouse Union agreed to set up a Worker Training Program that would enable ILWU members to keep pace with industry modernization. While this commitment was made 4 years ago, it was not until earlier this year that the Maintenance and Repair Facility received the final permit approval and began building.
McOsker also introduced an amendment at this hearing for the Executive Director of the Port of Los Angeles to establish a verifiable baseline staffing plan for the APM Terminals, including an enforceable hiring plan from the Maintenance and Repair Facility at Pier 400.
McOsker’s motion will stay in committee to continue to receive updates and reports. The Harbor Commission on Wednesday will hold a special hearing to consider a new permit for replacement cranes at APM Terminals.
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Listen to the committee meeting here.